Toyota Ups Bet On Joby Aviation's Flying Taxis To Nearly $1 Billion

By Yahoo! Finance | Created at 2024-10-02 15:37:06 | Updated at 2024-10-03 21:34:42 1 day ago

Toyota (TM) announced Wednesday it is investing an additional $500 million into Joby Aviation (JOBY), bringing the legacy automaker's total stake in Joby to more that $890 million to support the commercial production of Joby's electric air taxi. Joby stock jumped Wednesday.

Toyota's $500 million investment in Joby Aviation will be made in the form of cash for common stock. The investment will be made in two equal payments, one slated for 2024 and the second to come next year, according to Toyota.

Joby Aviation Chief Executive Joeben Bevirt said in a the press release that Wednesday's investment "builds on nearly seven years of collaboration between our companies."

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The California-based outfit recently rolled its third aircraft off its pilot production line in. Joby is breaking ground on an expanded manufacturing facility.

"The knowledge and support shared by Toyota have been instrumental in Joby's success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel," Bevirt said.

Toyota North America Chief Executive Tetsuo "Ted" Ogawa said the company is "excited to see Joby certify their aircraft and shift to commercial production."

"We share Joby's view that sustainable flight will be central to alleviating today's persistent mobility challenges," Ogawa said in the press release.

Joby Aviation stock rocketed 21% to 5.80 during Wednesday morning's market action. Toyota's American depositary receipts edged up 0.7% to 179.25 Wednesday.

Toyota stock ranks eighth in IBD's Automakers industry group. TM has a 39 Composite Rating out of 99. Additionally, the stock has a 19 Relative Strength Rating and its EPS Rating is 82 out of 99.

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